1. Auditors take a three-step approach to evaluate cutoff procedures: decide on criteria, evaluate client procedures, and test cutoff. 2. Evaluating a client's procedures for reliable cutoff is important, such as sequentially numbered shipping documents and independent shipping/billing functions. Inadequate controls make accurate cutoff difficult. 3. When controls are adequate, auditors can verify cutoff by comparing the last shipping number of the period to sales records. They also examine subsequent period documentation to check for misstatements.